Q2 2021 DHT Holdings Inc Earnings Call

[music] GAAP.

Thank you.

Welcome to the second quarter trying to try and do you want.

<unk>, Inc. Earnings Conference call at this time, all participants are in and he said on the bed. After the speaker's presentation of that would be a question and answer session.

You asked the question of the read the session and you wouldn't need to press the star and 1 on your tongue.

Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero and we have 3 speakers today. The co Ceos see then heartfelt trick longboard top and our C F O and Idaho voice and I wouldn't know what ive 2 out of the.

And so over to you the first speaker today C. F O 9 out of Washington. Please go ahead.

Thank you.

Good morning, and good afternoon, everyone welcome and thank you for joining DHT holdings second quarter 'twenty of trying to honor and high school.

I'm joined by Dht's co Ceos.

And it's not sort of standard kicked them of that.

And there's all of them and go through financing from some highlights before we open up and for your questions. The link to the slide deck kind of British pound on our website. The interest line first dot com.

Before we get started with todays call I would like to make the following remarks, a replay of this concept of coal will be available at our website. The ex tankers dot com until August 17.

In addition of our earnings press release will be available on our website and up a bit of.

Of course system of and like I say mature form 6K.

As a reminder, on this conference call, we will discuss the murder and our forward looking and made sure. These forward looking statements are based on our current expectations about future events, including dht's prospects dividends and share repurchases and vector of Paramount, but all of them.

Look for the types of markets in general.

They may show up to a higher rate some of it's related to the session forecast of where the economic of clearances for the.

Price the same oil trading pattern.

Dissipate and level of and the buildings on the scrapping.

Subject of Drydock schedules.

Actual results may differ materially from the expectations reflected in these forward looking statements.

Urge you to read our periodic reports available on our website and.

The per system, including the risk factors and some of his reports for more information regarding risks that we face.

Look and have the P&L highlights EBITDA for the second quarter of 'twenty, 'twenty, 1 'twenty, 1 and with him and.

Net income came in at zero point of 8 million.

The result includes the profit of 13.6 million and related to the sale of DHT Lake and fish too many of them are.

Our non cash gain of 3 million and related to refinancing and a noncash gain and fair value related to interest rates derivatives of $2.2 million.

Opex for the quarter was $19.6 million equal to $7800 per day.

G&A for the quarter was $4.7 million.

And the second quarter of trying to put the wrong. The company achieved in the average TCE of $19500 per day, while the average TCE for the first half of 2021 and amounted to 25 up from $500 per day.

And I, historically very difficult and challenging challenging tanker market. We are pleased childbirth quoted positive numbers for both the second quarter and the first half of 'twenty or 'twenty 1.

Moving over to the balance sheet the quarter ended with $52 million of cash of.

Quarter end of the confidence of availability under both the revolving credit facilities with hundreds of 92 million, putting total liquidity of 235 million as of June 30.

We have continued to strengthen the balance sheet with the refinancing of the Nordea credit facility and the prepayment of zone during the quarter.

Financial leverage it's about 30% based on market volume for the ships and that.

Debt per vessel of $17.6 from OEM at quarter end.

Looking at the cash bridge the quarter started with $54 million of cash and we generated 21 million and EBITDA.

And I read the prepayment and cash interest amounted to $6 million.

29 million of analysts used related to share buyback and dividend payment of <unk>.

Many of them and was used for maintenance and the scrubber Capex and.

So there are changes and working capital amounted to $18 million.

Proceeds from sale of of both of the.

The refinement was $51 million 50.

If the primary and.

It should and connection with the refinancing ninety-three memorandum of what's used to prepay alone of term debt.

Quarter end of the with $52 million of cash.

With that I will turn the call over to trade them up.

Thank you Dana.

Switching now to capital allocation.

For the second quarter of a total of $25.8 million will be returned to shareholders and as previously announced the company bought back 2.2% through outstanding shares during the quarter for a total consideration of $22.5 million.

In addition, the company will pay the dividends of <unk> <unk> per share for the quarter.

Will be payable on the 26th of August to shareholders of record of.

And the 19th of August.

And with that the company has now paid dividends every quarter for 11 and a half years.

And then we wanted to provide you a little update on the fleet side.

And again as previously announced we bought and took delivery of 2 modern scrubber fitted eco ships during the first half the.

BHP Harrier and DHT or spread.

We paid 68 million per ship and note the broker value assessment and now are some 10% higher.

We also sold our 3 older ships will 2004 built during the spring.

The Lake and Raven were delivered during the second quarter, and we recorded a $13.6 million gain on these sales.

The DHT Condor was delivered to the new owners and July and we expect to book a profit of about $1.5 million on that sale.

And the next slide let this then provide you an update of what has been going on on the liability side of the balance sheet during the quarter.

And as previously announced we have refinanced the all of that Nordea facility with the new and expanded Nordea facility.

The new facility is a firm commitment of $316 million with the addition of of 250 million and accordingly.

The new loan carries a margin of 1.9%.

It has the DHT style 20 year repayment profile the <unk>.

5.5 year tenor and carries the normal DHT covenants.

Additionally, and importantly, we were able to continue to benefit of having prepaid all of regular installments for 2021 and 2022 under the old facility.

So the all the installments, we paid from now through 2022 and this facility.

And our $2.5 million per year for each of the 2 new acquisitions, the harrier and the osprey.

During the second quarter, we extended our runway of low cash breakeven rates by pre paying all of the 2022 installments.

Under our other large credit facility of the ABN Amro low.

And of minutes, Ryan will provide more color on our very low cash breakeven levels for the rest of this year and next.

Yeah.

From the table on this slide you can see that we of $536 million of bank debt comprised of the 2 relatively large syndicates and 2 smaller bilateral loans.

Further we currently have $182 million of available revolver capacity.

We are a mere $5 million of regular installments for the second half of this year and no more than $10 million for all of next year.

And finally, you will note that there will be of no refinancing needs until the fourth quarter of.

2023.

So as you can see we continue to enjoy strong support from our banking universe.

The thing that was clearly demonstrated by the terms of this refinancing which in fact were the best way of achieved.

11 of the areas at the helm of DHT.

And with that I'll pass it over to Simon.

Thank you Tim.

And the next 3 slides and we'll discuss the employment of our fleet of wiring and connection to the Drydocks and cash breakeven levels.

And the first page you will see of the expected ratios of scope from time charter employment during the last 2 quarters, so plenty of Honeywell.

For the third quarter, and we are covered about 42% of our fleet from the time charters of an average rate of 2000 and several of our first of all of the day.

Some of these time charters are of a short term nature of sequencing of the decent opportunity offering premium earnings to the spot market.

Thus far for the third quarter and we have booked the income for 64% of the fleet Thats, an average rates of <unk> 122000 of 100 per day.

For the fourth quarter, and we have total 23% of the fleet from time charters at the average rate of about $32 from the 100 per day.

We don't expect to entry and traditional time charters and the near term as we don't consider the combination of currently available rates and durations to be compelling.

As many of you noted a few quarters back and we started to take advantage of the weak spot market to bring forward the drydocks.

During the second quarter net quarter of about 100 days off hire and connection with write offs.

We expect another 80 to 100 days during the third quarter with an additional 40 to 50 based and the fourth quarter.

The worst of adult during this period and the second half includes the installation of ballast water treatment systems and the scrubbers.

This will also mark the end and Thats why.

Of our scrubber retrofit program from taking.

And taking our scrubber fleet. The 17 also of 26 ships.

The key benefit to all of these efforts is that the of only 70. It's in line with plan of our base for all of 2022.

As such we are positioning our fleet to be ready on the Dallas store at the time and 1 should expect the much healthier freight markets.

And then from a fifth of our keen focus on cash breakeven with the.

The total charge offs, we had in place and combination of the debt prepayments that the amaze.

To ensure we enjoy a very robust cash breakeven levels for our fleet.

And if the price of both for the fleet as the whole on the spot fleet specifically.

As you will see from the graph on the left from the slide the full fleet needs to January of 16600 of per day, and our spot fleet 10002 hundred per day of the company to be cash neutral for the second half of this year.

On the similar illustration and the graph on the right you will see that the full fleet needs to generate 14 pumps and enrollment of the per day and our spot ships 10, 6 during the first half of 2022 for the confidence of the cash neutral.

The key drivers behind these numbers are the prepayments of debt that has been made with only $10 million and scheduled a mark for the net for the year and very limited maintenance capex, reflecting only the 3 ships planned for dry dock.

Do you think these numbers stand out was very robust protecting the both sides of the adult giving away the upside.

We are constructive on the markets, but we think the recovery could come a bit later than what most people suggests.

Oil inventory levels have been coming down and the OPEC trustee of the gradually increasing supply.

<unk>.

Covid is still impacting the demand picture.

And this happened at the time and the fleet is growing because of the new ships being delivered without the retirement of older ships.

It's tough out there.

And in August of simplicity, and Theres, 2 day low cargo and 2 new initiatives.

This being said the longer this drag so the faster and more brutal the recovery could be.

So let's sum of how we are positioned.

Well, we have renewed our fleet this year by buying 2 modern quality ships and selling <unk> older ships, all at good prices and our view.

2.

We secured in the Internet of things package of attractive terms with our supportive universe of lending banks.

3.

We have a strong balance sheet, the leverage of 30% paired with and with a healthy liquidity position.

And 4 we enjoy a very low cash breakeven levels for our fleet from both this and next year.

So and so we are in excellent shape and are all working hard to control what we can control and are executing on the opportunities the markets presented.

And with that we opened up the Q&A operator.

Thank you.

And as a reminder, sue's to ask the question. Please press star and 1.

And Jonathan.

The question. Please go ahead.

We will now take the first question from the line of Ryan <unk> with Jefferies. Please go ahead. Your line is now open.

How the centric vanilla how's it going.

And good thanks and thanks.

Excellent.

All the oil low oil.

Arm, but everything is go down here.

Couple of questions from me I guess, starting with your fleet here you recently saw all of the 3 all of the Vlccs you bought the 2 modern Vlccs all of this year I guess, how do you feel about your fleet. Currently and then you mentioned youre not looking to do any time charter outs, but any appetite for time charter ins to.

The grow a little bit more exposure.

I think as we've said many of titles said before in general we are not really entertaining and time chartering in.

So as of few reasons for that volume.

It is essentially the 100% financing it will negatively impact the.

Our cash breakeven levels of such.

And also we like to have full control of the technical operations. So all of the ships under our control. That's the used to service our customers. So time charter and the obligated Joe well with all of that so.

And then in terms of additional asset sales our modern purchases.

On the sales side, we have no intention of selling any of the ships on the side of the recovery.

As we have discussed in the past the.

And the appreciation of the secondhand values happened a little.

Quicker and faster and we unexpected so we think that we have gotten to a level where.

And we're actually quite pleased with the fleet that we have and we really do not currently have any intentions to buy or sell some of these are sort.

Of our home territory for us in the.

And then the 2006 vlccs as well as we can.

Okay and.

And then looking at the capital allocation slide I know you've been pretty committed to that to the dividend.

Regardless of earnings.

And also looking at the share buyback right.

Very good use of cash there you return the 25 to shareholders buying a $3.7.

And shares.

I guess, what was the thinking behind that how did you get to that calculation and how much.

More and share repurchases are you looking at here the remainder of the year.

And again as we've said before we are not regularly doing buybacks and so.

A couple of things that need to be and alignment that we find the.

The <unk> is on its way up and we see a disconnect between share prices and NAV and that's the that's typically when we have bought back shares over the years.

We felt that after we acquired the too.

The 2 ships and the beginning of the year.

The prices really took off.

And as we just said we went to intrigue by the secondhand opportunities.

With the share price hasn't really accelerated 2 to the second makes sense and we thought that 2 of the 2 by shifts in the form of buying our own shares and have made sense.

As far as forward appetite, that's going to be decided and all of those.

The same factors, but.

And.

<unk>.

It could very well be that we will continue to <unk>, but the.

There is no sort of Tom.

Target that we want to spend X million dollars or anything like that so it's purely opportunistic approach from from our side.

Got it sounds correct and quickly quarter of today's guidance on just the spot vessels do you have that number of the rates that you've booked so far for spot from <unk>.

It's below the 1 third of the spot fleet.

And Thats the 10006.

Thank you.

Well hey, thank you so much.

Thank you.

Now taking the next question from the line of all of my math from Jackson and Securities. Please go ahead and that is now open.

Thank you very much hey, guys.

Good afternoon and just.

Maybe following up a little bit on Randy's question regarding the sort.

Sort of the discussion around the time charters, given we've had such extremes here over the past 2 years.

It has clearly paid off at least for you to have several of your ships on time charter that you booked last year and so this past quarter you earned $10.1 of the spa.

What market, but your overall fleet wide TCE of as much quickly it was closer to 20 basically.

Going forward, how do you think just in general I know the very near term there aren't that many opportunities but in the Grand scheme. When you think about DHT and on an ongoing basis, what percentage do you want to have your vessels on time charter.

We don't have a fixed percentage.

The targets that we look at the nominal numbers and.

Obviously last year and numbers were very attractive so.

Really as much as we could.

Some of the shorter charters this year and it's been more of an alternative to trading and the spot market so but.

In the next recovery you should certainly expect us to do a low.

The time charters and.

The numbers are very health favorable do as much as we kind of and so but it is north of 6% of fixed of the guidance is just what makes good economic sense for the ECM the Childers.

Okay, that's clear and and.

And I guess, maybe another follow up to the prior discussion points.

Clearly, especially with the Delta Gary and recently, there has been a bit of call. It a delay and the anchor recovery or at least and expected delay.

At least from on the part of what we're seeing.

The second and the stock performance.

And given the order books and they become very tight here with no real slots available, especially for tankers from maybe late 'twenty 4 and really 25. It does paint the positive picture as you mentioned in your opening remarks after basically of duration of the upswing once rates do turn.

And I know Youre fine standing Pat at the moment.

Do you feel about the investing capital and it's time to invest knowing that knowing that perhaps maybe 'twenty..2 we're looking at a healthier market and then of healthy market for 'twenty 2 'twenty 3 'twenty 4 potentially beyond that.

So just kind of the supply side, how do you feel then about deploying capital.

You bought the 2016 earlier this year.

What's the sweet spot when you do think about investing.

Thanks.

Yes.

And as you also said earlier for us to invest the ships have to build equal design.

<unk>.

The sort of late 15.

And yogurt.

And we felt from a sort of all of our cash return from for you. That's 5 barrels were really the sweet spots.

So the fuel economics of our fiber rollout of <unk>.

<unk> is basically the same sort.

So we're very happy with those investments.

Keep in mind that in the sort of recovery when it happens this company will turn out the lot of money with the 26 ships if all of the house, but.

But it's important for us and the invest to also look at the required rates over the life of the remaining life of the ships that the buyer and not just both of you can earn in a total of 24 of 36 months. So this is the reason why of it took a step back.

The asset prices so the rest of the up much quicker than we had expected.

And the spring so if.

And if for some reason and there'll be opportunities to.

And if you look at levels look too dissimilar to what the order.

Earlier this year, we are certainly open to consider it so we hope against buying more ships, but there has to be at levels that we think will represent good investments over the remaining life of the ship.

Got it thanks, and thanks for that color I'll turn it over.

Yes.

We will and now taken next question is from that line of.

Zach from weather.

Please go ahead of your line is now open.

And good afternoon, everyone how are you.

Okay.

Okay.

Hello, Hello, Hello.

Hello, Ed.

Right.

Got it thanks.

Yes, it's a 2 part question.

And regarding the spread of <unk>, what sort of preferred day, you guys seen between the scrubber and non scrubber fitted vessel and.

And secondly.

With the sales that you guys announced on the.

The 2004 of that so all of that is corporate governance.

Our requirement to sell viscose.

To answer the latter part first maybe.

The has been the ships so low from us, but the without scrubbers and the market. So there is appetite for that as well.

And that has mainly been the ships coming out of Japan, and more than maybe more basic specifications and the typically and picked up.

Bye.

Private owners.

As such and so on.

And for US they will set of particular interest in our ships with maybe the core staff scrubbers, but they are also very well maintained.

And industrial payer that both the ships so they will use them for our own transportation needs and so that's also true.

Good numbers from that.

Currently the annual benefits of a non eco ship the discovery of about $2 million.

Over the year. So that's sort of the additional earnings you can you will get so you can do the rest of the math yourself I guess.

Yeah.

Okay, Thanks, and I guess.

And the second part of my question was it.

Could we.

No you guys are not planning to sell any of the vessels.

And you guys have stopped you're just because of the program at 17.

Of course.

Thinking about it if you guys were to entertain.

Telling you the backfill could it be from the part of the fleet that had of subscribers.

No.

Yes.

And run the tanker owner and company essentially everything is for sale and it all depends on the price.

Net.

And carbon install and we only sell of the oldest ships with scrubbers and without scrubbers. It really is where we think.

It moves the shareholders and where it makes sense to us.

And with all of that said traditionally we have been sold the filling out from the older and of the fleet.

And you will note that the.

Basically all of our older ships are scrubber fitted or will soon be scrubber fitted.

Sure.

Hopefully that adds some color to your question.

Alright, Thats perfect. Thank you I'll turn it over.

Thank you.

The 1 taken next question from the line of Jon Chappell from Evercore. Please go ahead of your line is now open.

Hey, everyone. This is actually Sean Morgan on for Jon Chapell of this morning.

So.

It appears that you saw.

And some extended 4 of 5 <unk>.

Tcs since the Q1 results.

Just wondering if we could get the types of rates those are being signed on and should we just use the ship ship broker figures for the 1 year or is there a higher extension rate.

Wow wall time charter the charters of last year.

It's mixed by younger and helped US close the range some of that particular sharp peso and I think you should relate to the numbers, we have the skills levels the average.

For the coverage ratio of <unk> each quarter.

Okay, Thanks and.

And then.

On the on the breakeven slide I think that's interesting you're able to reduce the maintenance capex per year for the <unk>.

<unk> quarter, but.

Are there any ability to.

Offset some of the Opex costs are those pretty pretty efficient and at this point and in terms of just reducing the breakeven even further.

Yes.

And we have a long term view and the way we operate our ships.

And how much we spend on Opex is totally independent.

Type of market we're in.

But you'll also see that we will run this quite competitively and cost efficiently. So as Leila said.

And for the quarter was $7800 per day per ship and we find that to the quite sharp and competitive.

To your question.

Specifically no. We don't think there is any room to cut.

Opex just to obtain the lower cash breakeven.

Yeah, Okay. Thank you.

Welcome.

We will now take our next question from the line of Ben Nolan from Stifel. Please go ahead. Your line is now open.

Yes. Thanks.

I wanted to get back to the scrubbers, but maybe from a different perspective, it sounds like you're you're done here at <unk> is that is that simply a capital allocation decision.

Preserving capital and it's a challenging market, maybe don't have as many dry docks coming.

Beyond this quarter, but.

Or is it sort of the ships that don't have scrubbers are sufficiently efficient enough. So that you don't really feel like they.

And they would benefit and ops.

The latter part of your question is correct price of these are really the eco ships.

And they consume much less fuel than the.

Sort of a more mature and of the older fleet. So that means the payback for the longer the investments the scope of compelling simply so Israel pleased with how we set it up now and is really all the older ships of course covers.

And then.

There are some equal shapes and without scrubbers.

Okay.

And at least from where we sit now those.

More modern ships, probably never will have scrubbers or at least not anytime in the near future.

Sure.

That's correct.

Okay.

And then sort of getting back of the cash breakeven first of all.

And.

The nice that you've been able to retool the debt and.

And.

Very little amortization associated with that but.

And just thinking through it and we hopefully get into a better market, perhaps at some point next year, obviously, the low cash breakeven as it is a pretty easy bar.

And then looking beyond.

Assuming that you are generating substantially more cash then sort of as needed to cover that debt is there sort of a need to.

Pick that amortization and backup to a little bit of a higher level.

And maybe maybe a little bit more.

With respect to debt repayment or.

Would you imagine that it should cash flow be available it would be available to distribution to shareholders of 1 corner of the Ghana.

There is definitely no need to ramp up the amortization Ben.

We're totally of free to do whatever we want with the available where the cash flow that once the market recovers, but I think it's premature today is it and sort of indicate what we're going to do once the market returns to healthy healthy numbers, but what we enjoy as to the jazz of freedom to choose what we think is the right thing to do.

And when that time comes.

The kick in.

The key of keep in mind that are low facilities are straight line.

And we've just elected to prepay debt.

The scheduled and more particular period and.

To the flu.

And prove the position of the company.

So it won't vehicles, we have non amortizing debt for the sort of a wall of debt coming.

And so.

Sure Okay.

And I understand I appreciate it thank you guys.

And also.

Our capital allocation is the minimum 60% of total ordinary net income to the distribute it to shareholders.

So obviously.

It's the cash flows are phenomenal the company can consider true.

And we'll use debt capital allocation policy and as.

As you saw for the second quarter.

Uh huh.

Great. Thanks.

And as a reminder, if you wish to ask a question. Please press the star and Rod.

Can you kind of a CEO.

And the quest piece price.

And we will now take our next question from the line of Robert <unk>.

Dara from Murray.

Please go ahead. Your line is now open.

Thank you for taking my call.

A proof of low growth.

What you guys have accomplished almost broke the difficult quarter.

It's been true.

I'll find the quite craft, Lenovo and Bob will be.

Bruce and the last 2 years.

And debt levels of all the non on the.

Nominal and ourselves.

Now.

Slide 36.

The <unk>.

Wonderful job done.

Incredibly difficult market now.

I would like.

The.

What would.

Cause earnings of this quarter with the scale.

The long 1 hundreds of million dollars GAAP.

Our board of what would be anywhere near where you are now.

And 1 of them closed.

Hello future.

And while we're buying shares.

Good luck of course suggest that U.

So from the <unk> put option.

Corey.

I realize this will not bring true.

Upon the money for the.

And we'll bring some of them.

Good day.

Especially with lots of Janney.

January.

Paul.

Have the cash set aside to cover whatever options and we're able to sell.

And that will hopefully reduce flow.

Cost of all of those shares.

Of our repurchase zone.

And as well as strong repurchases and.

<unk> grew volume as well.

Oil and coal.

And I call and global.

And the way you guys are running those comparable.

Harvard business.

Class.

Classic.

And I'll do it.

So that's my input.

Thank you. Thank you for your kind words and.

And we certainly recognize sort of the auction market.

Something we can also get into and we have discussed this in the past but.

Overall, we find that the liquidity of may not the level of what it needs to be in order for us to do something there, but we appreciate your input.

While we don't have to do a lot, but it just shows that you.

And you can do some.

I would much rather.

You build your cash from.

The opportunities that may come.

We as you said, we'll probably go through a longer.

Tough quarter.

Before we get into a really great market like we had in early 2020.

All of them.

Sure like to as a shareholder 1 of years now.

The C bobb happen.

Yes.

We will now take care.

Alright.

Do you have.

And pumps 1 of the current low levels of.

The scale propane.

And all of your debt.

I think now we.

Have prepaid all of regular installments on the 2 large facilities through 2022.

So do not expect us to make additional premium payment and the near future we feel that we have.

The significant runway of 18 months share with the unusually low cash breakeven levels.

And we are certainly expecting the market to come back to more normal and healthier levels within that timeframe.

Currently we do not have any intention and require additional prepayments.

Okay. Thank you.

Well done guys.

Thank you.

We will now take our next question from the line of Mark Smith from Wainwright. Please go ahead of your line is now open.

Yes, hi, good afternoon.

2 questions <unk> been extremely disciplined and your capital allocation strategy.

And you also mentioned that.

Guys I appreciate it a little faster than you have the thought is it fair to assume that you would rather be buying back stock and your.

And company than buying secondhand vessels as long as the arbitrage. That's why does there is correct.

The.

The <unk>.

And with it and the second quarter, and we'll sort of all of <unk>.

Buying ships and we both of our old ships right. So.

And there were certainly of cheaper developers available and the market, but the levels of course no.

<unk> are less competitive buying 1 or 2 of 3 ships.

I think sort of.

Agnostic and in general all of it the Lady.

I would like to.

And the opportunity to buy of walnuts and must be more ships, but the.

And at the op.

The tunica was all debt so.

We just think it's and the business we're in and over time, you could argue that it's not the phenomenally high and margin business. So we think it's paramount that Dubai right and.

And by saying buying right and it's being disciplined and as you phrased it and items.

Yes that kind of <unk>.

The second question.

Some of your competitors have been.

And buying the new ships dual fuel capability.

How do you feel about your fleet, Jeff very modern fleet.

And how do you feel like your position for the new regulation.

And your appetite for pursuing any of these type of new builds.

As we've said and the sort of summary, we feel that VR and AR in excellent shape.

Of a good fleet.

And we are well positioned for the sort of changes in the road and sort of framework is coming up over the next few years.

So we will be able to meet the required.

Quite confidence net so that we're not at the.

Contract new buildings.

At this juncture and as the 2 reasons for that role and as the price is right now are just too high of of Inc.

And secondly, there is the lack of clarity on the technology of going forward.

We are of course paying relative of the development.

The other all of them might think differently.

Very good thank you.

Thanks.

As there are no further questions.

And on the call back to the company.

Well, thank you very much to all of the.

So the interest and DHT and wishing you good day.

Okay.

Our next call. Thank you for participating you may.

Disconnect.

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And then.

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